California Sales Tax To Rise By 1 Percent

By: Judy Lin, Associated Press Email
By: Judy Lin, Associated Press Email

SACRAMENTO (AP) - Get ready to pay more for cars, furniture, laptops and toys.

Starting Wednesday, Californians will start feeling the pain of the recently negotiated state budget fix when a 1-cent sales tax hike takes effect.

The state tax rate will go up to 6 percent but local taxes will bring the average rate to nearly 9 percent. That's among the highest rates in the nation.

The temporary increase is projected to bring in $5.8 billion over the next 15 months. But Californians could pay even more if voters extend the tax in a May 19 special election.

Businesses and manufacturers say the increase could add to the state's economic woes in the midst of a recession.

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